Dear Reader,
Defense budgets around the world are increasing at rates we haven’t seen since the Cold War.
Trillions of dollars are flowing into these defense companies amid rising world conflicts.
Let’s get right to it in my latest MarketBeat interview:
What we’re seeing now is a rise of all these independent defense contractors.
The companies benefiting most are on the cutting edge of modern warfare…
They are true disruptors.
Now, we’ve had a lot of peace, but the world has entered a new cycle of competition.
We’ve had Russia/Ukraine, Iran/Israel, and the United States getting involved, of course U.S./China tensions…
We have a few powers – specifically China and Russia that want to revise the international order.
Of course China wants to put itself at the center in the global pecking order – they want to take the U.S.’s spot as the dominant world power.
So this is really happening, and that has forced the U.S. to increase defense spending, and NATO now to increase defense spending.
Now, as we’ve said many times, this spending isn’t going into things like tanks.
You know, this is a really exciting time for an otherwise boring industry. Because it’s being driven now by AI.
These are not your father’s defense stocks.
Remember, after the Cold War, defense spending went down. So the industry consolidated.
The Lockheed Martins, Boeings, and Northrop Grummans bought the smaller defense contractors and got big and bloated and really stopped innovating.
And you know, what Elon Musk did with SpaceX revolutionized how business was done with the government, because he moved faster and did it better.
And now we’re seeing a rise in independent defense contractors that are tackling problems in really new and innovative ways.
They’re starting to eat the lunch of bigger competitors.
It’s astonishing and has created some amazing opportunities for folks.
And they’re being met with historic defense budgets the world over.
I’ve been preparing readers for a big defense budget for a while now, and finally the world and the budget are catching up to us.
“The Buck Stops Here,”
